CITIBANK CREDIT CARD ISSUANCE TRUST

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): ober 25, CITIBANK CREDIT CARD ISSUANCE TRUST (Issuing Entity in respect of the Notes) (Exact name of issuing entity as specified in its charter) DELAWARE NOT APPLICABLE (State or other jurisdiction of incorporation or organization) (Commission file number) (I.R.S. Employer Identification No.) CITIBANK CREDIT CARD MASTER TRUST I (Issuing Entity in respect of the Collateral Certificate) (Exact name of issuing entity as specified in its charter) NEW YORK NOT APPLICABLE (State or other jurisdiction of incorporation or organization) (Commission file number) (I.R.S. Employer Identification No.) CITIBANK, N.A. (Exact name of depositor and sponsor as specified in its charter) UNITED STATES OF AMERICA (State or other jurisdiction of incorporation or organization) (Commission file number) (I.R.S. Employer Identification No.)

2 399 Park Avenue New York, New York (Address of principal executive offices of depositor and sponsor) (Zip Code) Registrant s telephone number, including area code: (212) (Former name or former address, if changed since last report): Not Applicable Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

3 Item 8.01 Other Events. The following information relates to the credit card receivables owned by Citibank Credit Card Master Trust I and the related credit card accounts. Some of the terms used herein are used as defined in the Glossary of Terms at the end of this Report. Reporting System Enhancements As previously disclosed in the issuance trust s quarterly Form 8-K for the second quarter of, filed with the SEC on y 26, (the 2Q Form 8-K ), starting with the trust monthly reporting period beginning on il 26, and ended 28,, system enhancements have provided management with improved financial reporting for the issuance trust, the master trust s assets and the collateral certificate. Implementation of the system enhancements was fully completed during y. As a result, the characterization and recordation of certain cardholder payments, fees, adjustments, returns and reversals (collectively payments ) were improved for financial reporting purposes for all periods beginning after e 25,. The improved characterization and recording of these payments resulted in a marginal decrease in the reported finance charge payments, interchange and recoveries, and a marginal increase in the reported net credit losses, as compared with the financial reporting if these system enhancements had not been implemented. As a result, Gross Charge-Offs, Recoveries, Finance Charges and Fees Paid, and Revenue Yield as a percentage of total Principal Receivables will each be marginally lower, and Net Losses and Net Losses as a percentage of Gross Charge-Offs will each be marginally higher, for all periods beginning after e 25,, as compared with the information that would have been reported for such items in this Form 8-K reporting period and future reporting periods if the system enhancements had not been implemented. Financial reporting for all periods beginning after e 25, is not fully comparable to financial reporting for prior periods. Further, system limitations prevent management from producing data that would have been reported in past periods had the system enhancements been implemented prior to e 25,, other than certian estimates shown in the 2Q Form 8-K, and also prevent the production of data that would have been reported in this and future periods had the system enhancements not been implemented. Therefore, the variances in the financial reporting for this and future Form 8-K reporting periods between the reported data and the data that would have been reported had the system enhancements not been implemented will not be available. Only the financial reporting was impacted by these changes. The master trust s assets and the servicing of those assets were not impacted. Other than those items discussed above or as previously disclosed, no additional significant impacts to the information reported on this Form 8-K have been identified as a result of the system enhancements, and management does not currently expect any additional significant impacts to the information reported on this Form 8-K in the future. Refer to the 2Q Form 8-K for additional information regarding the system enhancements. In addition, the issuance trust s Form 10-D s filed with the SEC on y 15, and ust 15, described certain impacts to the financial reporting on Form 10-D also as a result of the system enhancements. 2

4 Inclusion of Certain Inactive Accounts in Second Quarter Master Trust Financial Reporting Financial reporting for the master trust included in its quarterly reports on Form 8-K, including this Form 8-K, exclude inactive, zero balance accounts that, after their proper inclusion in the master trust, became categorized as converted or lost or stolen accounts ( permanently inactive accounts ). However, due to a reporting system change, the financial reporting in the master trust s quarterly report on Form 8-K for the second quarter of, filed with the SEC on y 26, (the 2Q Form 8-K ), included 4,537,956 permanently inactive accounts. The table below sets forth certain data as reported in the 2Q Form 8-K and the corresponding data that would have been reported if the permanently inactive accounts had been excluded. Inclusion of the permanently inactive accounts also impacted the number of accounts and percentage of total number of accounts reported in the Composition of Accounts by Account Balance, Composition of Accounts by Payment Status, Composition of Accounts by Age, Composition of Accounts by FICO Score, and Composition of Accounts by Credit Limit tables. However, the amount of receivables outstanding and percentage of total receivables outstanding reported in each of these tables were not impacted by the inclusion of the permanently inactive accounts. 3 As reported in the 2Q Form 8-K Excluding permanently inactive accounts Total number of accounts as of e 30, 20,555,354 16,017,398 Average Principal Receivable Balance as of e 30, $ 1,721 $ 2,209 Average credit limit as of e 30, $ 14,954 $ 19,191 As of the most recent related billing date prior to e 30,, percentage of accounts that had a credit balance or otherwise had no payment due 57.80% 45.85% cardholders that paid their entire outstanding balance 19.19% 24.62% cardholders that made only the minimum payment due 3.55% 4.56% cardholders that paid an amount less than the minimum due (including no payment) 2.39% 3.07% cardholders that paid an amount greater than the minimum due, but less than the entire outstanding balance 17.07% 21.90%

5 Loss and Delinquency Experience The following table sets forth the loss experience for cardholder payments on the credit card accounts for each of the periods shown on a cash basis. The Net Loss percentage calculated for each period below is obtained by dividing Net Losses by the Average Principal Receivables Outstanding multiplied by a fraction, the numerator of which is the total number of days in the applicable calendar year and the denominator of which is the total number of days in the trust monthly reporting periods for the applicable period (365/278 for the nine months ended tember 30,, 366/365 for the year ended ember 26,, 365/364 for the year ended ember 27,, and 365/365 for the year ended ember 28, ). If accrued finance charge receivables that have been written off were included in losses, Net Losses would be higher as an absolute number and as a percentage of the average of principal and finance charge receivables outstanding during the periods indicated. Average Principal Receivables Outstanding is the average of principal receivables outstanding during the periods indicated. There can be no assurance that the loss experience for the receivables in the future will be similar to the historical experience set forth below. There could be future increases in net losses, and such increases could be significant. Loss Experience for the Accounts (Dollars in Thousands) Nine Months Ended tember 30, Year Ended ember 26, Year Ended ember 27, Year Ended ember 28, Average Principal Receivables Outstanding $ 39,619,266 $53,779,354 $60,924,613 $69,707,899 Gross Charge-Offs $ 1,451,015 $ 3,191,647 $ 4,886,666 $ 7,852,393 Recoveries $ 494,310 $ 759,252 $ 698,723 $ 558,737 Net Losses $ 956,705 $ 2,432,395 $ 4,187,943 $ 7,293,656 Net Losses as a Percentage of Average Principal Receivables Outstanding 3.17% 4.54% 6.89% 10.46% 4

6 Net losses as a percentage of gross charge-offs for the nine months ended tember 30, were 65.93% and for each of the years ended ember 26,, ember 27,, and ember 28, were 76.21%, 85.70%, and 92.88%, respectively. Gross charge-offs are charge-offs before recoveries and do not include the amount of any reductions in Average Principal Receivables Outstanding due to fraud, returned goods, customer disputes or various other miscellaneous write-offs. During the 45 trust monthly reporting periods from uary through tember, such reductions ranged from 0.03% to 1.28% of the outstanding principal receivables as of the end of the related trust monthly reporting period. The reduction of receivables in this manner reduces only the seller s interest in the master trust. Recoveries are collections received in respect of principal receivables previously charged off as uncollectible. Net losses are gross charge-offs minus recoveries. The following table sets forth the delinquency experience for cardholder payments on the credit card accounts as of each of the dates shown. The Delinquent Amount includes both principal receivables and finance charge receivables. Each percentage is the result of dividing the corresponding delinquent amount as of the end of the period indicated by the sum of the average principal receivables and average finance receivables outstanding during the nine months ended tember 29, and the years ended ember 30,, ember 25,, and ember 26,. There can be no assurance that the delinquency experience for the receivables in the future will be similar to the historical experience set forth below. There could be future increases in delinquencies, and such increases could be significant. Number of Days Delinquent As of tember 29, Delinquent Amount Percentage Delinquency Experience for the Accounts (Dollars in Thousands) As of ember 30, Delinquent Amount Percentage Citibank, as servicer, may enter into arrangements to extend or otherwise change payment schedules for cardholders who are experiencing financial hardship. This includes reducing interest rates, ceasing the accrual of interest entirely or making other accommodations to a cardholder. The following table presents the number of accounts and the receivables outstanding of portfolios designated to the master trust subject to such arrangements as of the dates noted, and as percentages of the total number of accounts and total outstanding receivables in the master trust as of tember 29, : 5 As of ember 25, Delinquent Amount Percentage As of ember 26, Delinquent Amount Percentage Up to 34 days $ 755, % $ 976, % $1,281, % $1,728, % 35 to 64 days 198, , , , to 94 days 150, , , , to 124 days 133, , , , to 154 days 96, , , , to 184 days 97, , , , Total $1,431, % $2,170, % $3,138, % $4,743, %

7 Number of Accounts Percentage of Total Number of Accounts Receivables Outstanding Percentage of Total Receivables Outstanding Loan Modifications - as of 9/29/ 217, % $ 1,004,798, % Total as of 9/29/ 17,813,768 $40,717,497,250 Revenue Experience The revenues for the credit card accounts from finance charges, fees paid by cardholders and interchange for the nine months ended tember 30, and for each of the years ember 26,, ember 27,, and ember 28, are set forth in the following table. The revenue experience in this table is presented on a cash basis before deduction for charge-offs. Average Revenue Yield calculated for each period below is obtained by dividing Finance Charges and Fees Paid by Average Principal Receivables Outstanding multiplied by a fraction, the numerator of which is the total number of days in the applicable calendar year and the denominator of which is the total number of days in the trust monthly reporting periods for the applicable period (365/278 for the nine months ended tember 25,, 366/365 for the year ended ember 26,, 365/364 for the year ended ember 27,, and 365/365 for the year ended ember 28, ). Revenues from finance charges, fees and interchange will be affected by numerous factors, including the periodic finance charge on the credit card receivables, the amount of any annual membership fee, other fees paid by cardholders, the amount, if any, of principal receivables that is discounted and treated as finance charge receivables, the percentage of cardholders who pay off their balances in full each month and do not incur periodic finance charges on purchases, the percentage of credit card accounts bearing finance charges at promotional rates and changes in the level of delinquencies on the receivables. Revenue Experience for the Accounts (Dollars in Thousands) Nine Months Ended tember 30, The revenues from periodic finance charges and fees other than annual fees depend in part upon the collective preference of cardholders to use their credit cards as revolving debt instruments for purchases and cash advances and to pay account balances over several months as opposed to convenience use, where cardholders pay off their entire balance each month, thereby avoiding periodic finance charges on their purchases and upon other card-related services for which the cardholder pays a fee. Revenues from periodic finance charges and fees also depend on the types of charges and fees assessed on the credit card accounts. Accordingly, revenues will be affected by future changes in the types of charges and fees assessed on the accounts and in the types of additional accounts added from time to time. These revenues could be adversely affected by future changes in fees and charges assessed on the accounts and other factors. 6 Year Ended ember 26, Year Ended ember 27, Year Ended ember 28, Finance Charges and Fees Paid $ 5,290,230 $ 8,923,604 $10,335,132 $13,414,392 Average Revenue Yield 17.53% 16.64% 17.01% 19.24%

8 From ch to ch, a 1% discount percentage was applied to the principal receivables in the credit card accounts designated to the master trust. The impact of this discounting by recharacterizing 1% of principal collections as finance charge collections was to increase the reported revenue yield on the accounts by an amount ranging from 1.97% to 2.39%, with an average increase of 2.17%, during the 25 trust monthly reporting periods that discounting was in effect. This discounting was discontinued in accordance with the operative documents in il because the 3-month average excess spread was above 7% for each of the three preceding trust monthly reporting periods. Cardholder Monthly Payment Rates The following table sets forth the highest and lowest cardholder monthly payment rates for the credit card accounts during any month in the periods shown and the average of the cardholder monthly payment rates for all months during the periods shown, in each case calculated as a percentage of the total beginning account balances for that month. Monthly payment rates on the credit card receivables may vary because, among other things, a cardholder may fail to make a required payment or may only make the minimum required payment or may pay the entire outstanding balance. Monthly payment rates on the receivables may also vary due to seasonal purchasing and payment habits of cardholders. Monthly payment rates include amounts that are treated as payments of principal receivables and finance charge receivables with respect to the accounts under the pooling and servicing agreement. In addition, the amount of outstanding receivables and the rates of payments, delinquencies, chargeoffs and new borrowings on the accounts depend on a variety of factors including seasonal variations, the availability of other sources of credit, general economic conditions, tax laws, consumer spending and borrowing patterns and the terms of the accounts, which may change. Cardholder monthly payment rates are calculated on the balances of those cardholder accounts that have an amount due. Cardholder accounts with a zero balance or a credit balance are excluded from these calculations. As of the most recent related billing date prior to tember 30,, 42.57% of the accounts had a credit balance or otherwise had no payment due, 25.41% of the cardholders paid their entire outstanding balance, 5.13% of the cardholders made only the minimum payment due, 3.12% of the cardholders paid an amount less than the minimum due (including no payment) and the remaining 23.77% of the cardholders paid an amount greater than the minimum due, but less than the entire outstanding balance. Cardholder Monthly Payment Rates for the Accounts Nine Months Ended tember 25, (1) Year Ended ember 26, Year Ended ember 27, Year Ended ember 28, Lowest Month 20.00% 19.74% 18.44% 17.99% Highest Month 25.02% 22.63% 22.11% 20.69% Average of the Months in the Period 23.24% 21.56% 20.48% 19.15% (1) Percentages are shown for the nine months ended tember 25, (a period of 273 days) rather than the nine months ended tember 30, (a period of 278 days) shown elsewhere in this Form 8-K. The inclusion of an extra five days of payments at month-end, when many such payments are due, in the calculation of these percentages results in the overstatement of the actual payment rate compared to prior periods. Note that the percentages shown do not reflect one day of payments related to the accounts added to the master trust on tember 28,. Interchange Credit card-issuing banks participating in the MasterCard International, VISA and American Express systems receive interchange or similar fee income referred to herein as interchange as compensation for performing issuer functions, including taking credit risk, absorbing certain fraud losses and funding receivables for a limited period before initial billing. Under the MasterCard International, VISA and American Express systems, interchange in connection with cardholder charges for merchandise 7

9 and services is passed from banks or other entities which clear the transactions for merchants to credit card-issuing banks. Interchange generally ranges from approximately 1% to 2% of the transaction amount, but may be higher for some card products or transactions. Citibank is required to transfer to the master trust interchange attributed to cardholder charges for merchandise and services in the accounts. In general, interchange is allocated to the master trust on the basis of the ratio that the amount of cardholder charges for merchandise and services in the accounts bears to the total amount of cardholder charges for merchandise and services in the portfolio of credit card accounts maintained by Citibank. MasterCard International, VISA and American Express may change the amount of interchange reimbursed to banks issuing their credit cards. The Credit Card Receivables The receivables in the credit card accounts designated to the master trust as of tember 29, included $471,029,418 of finance charge receivables and $40,246,467,832 of principal receivables which amounts include overdue finance charge receivables and overdue principal receivables. As of tember 29,, there were 17,813,768 accounts. For financial reporting purposes, included within the accounts are inactive, zero balance accounts other than those categorized as converted or lost or stolen accounts. The accounts had an average principal receivable balance of $2,259 and an average credit limit of $13,534. The average principal receivable balance in the accounts as a percentage of the average credit limit with respect to the accounts was approximately 16.69% % of the accounts were opened before tember. As of tember 29,, 99.84% of the credit card receivables in the master trust represented obligations of cardholders with billing addresses in the United States. Of the accounts, as of tember 29,, the following percentages related to cardholders with billing addresses in the following states: Percentage of Total Number of Accounts Since the largest number of cardholders billing addresses were in California, New York, Texas, Florida and Illinois, adverse changes in the business or economic conditions in these states could have an adverse effect on the performance of the receivables. No other state represents more than 5% of the number of accounts or outstanding receivables. As of tember 29,, 2.38% of the credit card receivables in the master trust related to small business revolving credit card accounts originated by Citibank. The receivables in the 173,568 small business credit card accounts designated to the master trust as of tember 29, included $8,173,695 of finance charge receivables and $959,978,359 of principal receivables which amounts include overdue finance charge receivables and overdue principal receivables. Citibank issues its small business credit cards to business owners who agree to use the cards for business purposes. With respect to substantially all accounts, both the individual business owner and the business are jointly and severally liable for all charges and balances on the account. For the remainder of the accounts, only the individual business owner is liable. The small business credit card accounts generally have higher receivables balances, credit limits and monthly payment rates than the other accounts designated to the master trust, taken as a whole. In addition, interchange generated on the 8 Percentage of Total Outstanding Receivables California 13.83% 13.99% New York 11.91% 10.14% Texas 7.36% 9.28% Florida 6.36% 5.98% Illinois 5.39% 6.08%

10 receivables in these accounts is generally higher than the interchange generated on the receivables in the other accounts designated to the master trust. As of tember 29,, the small business credit card accounts designated to the master trust had an average principal receivable balance of $5,531 and an average credit limit of $32,701. The average principal receivable balance in the accounts as a percentage of the average credit limit with respect to the accounts was approximately 16.91%. 100% of the accounts were opened before tember. Of the accounts, as of tember 29,, 24.91% of the receivables related to obligors with billing addresses in California and 17.46% in Texas. No other state represents more than 10% of the outstanding receivables. As of tember 29,, 93.20% of the receivables in the accounts related to obligors with a FICO score greater than 660, and 97.30% of the receivables had a current payment status as of the most recent related billing date. As of the most recent related billing date prior to tember 29,, 31.84% of the small business credit card accounts had a credit balance or otherwise had no payment due, 47.39% of the obligors paid their entire outstanding balance, 1.99% of the obligors made only the minimum payment due, 3.20% of the obligors paid an amount less than the minimum due (including no payment) and the remaining 15.58% of the obligors paid an amount greater than the minimum due, but less than the entire outstanding balance. As of tember 29,, approximately 23.86% of the credit card receivables in the master trust are related to credit cards issued under the Citibank/American Airlines AAdvantage co-brand program. Cardholders in the AAdvantage program receive benefits for the amounts charged on their AAdvantage cards, including frequent flyer miles in American Airlines frequent flyer program. Conditions that adversely affect the airline industry or American Airlines could adversely affect the usage and payment patterns of the AAdvantage cards. In addition, any future termination of the AAdvantage program could have an adverse effect on the payment rates and excess spread reported by the master trust. As has been widely-reported, AMR Corporation and certain of its subsidiaries, including American Airlines, Inc. (collectively, AMR), filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in ember, and on ruary 14,, AMR and US Airways Group, Inc. announced a merger agreement under which the companies would be combined. On ust 13,, the U.S. Department of Justice (DOJ), along with the attorneys general of several states and the District of Columbia, filed an antitrust lawsuit seeking to permanently enjoin the merger. On ober 21,, the U.S. Bankruptcy Court entered an order confirming AMR s plan of reorganization, and the agreements for the Citibank/American Airlines AAdvantage card program were assumed by AMR through their normal expiration date, regardless of whether the merger is consummated. Despite this assumption, and particularly as a result of the DOJ lawsuit, it is not certain when the bankruptcy and merger processes will be resolved, what the outcome will be, or whether there will be an adverse effect on the co-brand program, including on performance of the AAdvantage cards or the related credit card receivables in the master trust. The credit card accounts include receivables which, in accordance with the servicer s normal servicing policies, were chargedoff as uncollectible. However, for purposes of calculation of the amount of principal receivables and finance charge receivables in the master trust for any date, the balance of the charged-off receivables is zero and the master trust owns only the right to receive recoveries on these receivables. The following tables summarize the credit card accounts designated to the master trust as of tember 29, by various criteria. References to Receivables Outstanding in these tables include both finance charge receivables and principal receivables. Because the composition of the accounts will change in the future, these tables are not necessarily indicative of the future composition of the accounts. 9

11 Credit balances presented in the following table are a result of cardholder payments and credit adjustments applied in excess of a credit card account s unpaid balance. Accounts which have a credit balance are included because receivables may be generated in these accounts in the future. Credit card accounts which have no balance are included because receivables may be generated in these accounts in the future. Account Balance Composition of Accounts by Account Balance Number of Accounts 10 Percentage of Total Number of Accounts Receivables Outstanding Percentage of Total Receivables Outstanding Credit Balance 136, % $ (32,993,696) (0.08)% No Balance 7,679, Less than or equal to $ ,767, ,734, $ to $1, ,159, ,308, $1, to $2, ,429, ,096,116, $2, to $3, , ,279,126, $3, to $4, , ,325,318, $4, to $5, , ,315,503, $5, to $6, , ,149,211, $6, to $7, , ,061,822, $7, to $8, , ,954,107, $8, to $9, , ,869,420, $9, to $10, , ,769,239, $10, to $15, , ,793,625, $15, to $20, , ,873,850, Over $20, , ,895,105, Total 17,813, % $40,717,497, %

12 Credit Limit Composition of Accounts by Credit Limit Number of Accounts 11 Percentage of Total Number of Accounts Receivables Outstanding Percentage of Total Receivables Outstanding Less than or equal to $ , % 36,035, % $ to $1, , ,960, $1, to $2, , ,482, $2, to $3, , ,218, $3, to $4, , ,727, $4, to $5, , ,027,633, $5, to $6, , ,756, $6, to $7, , ,039,331, $7, to $8, , ,096,485, $8, to $9, , ,217,798, $9, to $10, , ,341,088, $10, to $15, ,510, ,377,581, $15, to $20, ,904, ,082,465, Over $20, ,021, ,752,930, Total 17,813, % $40,717,497, %

13 Accounts presented in the table below as Current include accounts on which the minimum payment has not been received before the next billing date following the issuance of the related bill. Composition of Accounts by Payment Status Percentage Percentage of Total of Total Number of Number of Receivables Receivables Payment Status Accounts Accounts Outstanding Outstanding Current 17,569, % $39,285,983, % Up to 34 days delinquent 156, ,435, to 64 days delinquent 30, ,023, to 94 days delinquent 20, ,666, to 124 days delinquent 15, ,374, to 154 days delinquent 10, ,614, to 184 days delinquent 10, ,399, Total 17,813, % $40,717,497, % Composition of Accounts by Age Percentage Percentage of Total of Total Number of Number of Receivables Receivables Age Accounts Accounts Outstanding Outstanding Less than or equal to 6 months 29, % $ 80,383, % Over 6 months to 12 months 163, ,150, Over 12 months to 24 months 412, ,120,711, Over 24 months to 36 months 323, ,001,899, Over 36 months to 48 months 282, ,318, Over 48 months to 60 months 728, ,312,349, Over 60 months 15,873, ,139,684, Total 17,813, % $40,717,497, % 12

14 The following table sets forth the composition of accounts by FICO * score as of tember 29,. A FICO score is a measurement determined by Fair, Isaac & Company using information collected by major credit bureaus to assess credit risk. A credit report is generally obtained from one or more credit bureaus for each application for a new account. Once a customer has been issued a card, Citibank refreshes the FICO score on most accounts on a monthly basis. Citibank generally does not refresh the FICO scores of closed accounts that have no balance and certain other categories of accounts. A FICO score of zero indicates that the FICO score of an account has not been refreshed for one of these reasons or that the customer did not have enough credit history for a FICO score to be calculated. As of tember 29,, 89.02% of the receivables in the master trust related to obligors whose FICO score is greater than 660. Composition of Accounts by FICO Score Percentage Percentage of Total of Total Number of Number of Receivables Receivables FICO Score Accounts Accounts Outstanding Outstanding 0 3,910, % $ 229,771, % 001 to , ,181,346, to , ,432,721, to , ,626,418, to , ,066,462, to , ,611,391, to , ,448,517, to 739 1,027, ,068,195, to 759 1,095, ,510,776, to 800 2,607, ,749,698, and above 5,914, ,792,197, Total 17,813, % $40,717,497, % * FICO is a registered trademark of Fair, Isaac & Company. Billing and Payments The credit card accounts have different billing and payment structures, including different periodic finance charges and fees. The following information reflects the current billing and payment characteristics of the accounts. In general, each month billing statements are sent to cardholders. To the extent a cardholder has a balance due, the cardholder must make a minimum payment equal to the sum of any amount which is past due plus any amount which is in excess of the credit limit and, for most accounts, the greatest of the following: the new balance on the billing statement if it is less than $20, or $20, if the new balance is at least $20; 1% of the new balance plus the amount of any billed finance charges and any billed late fee; and 1.5% of the new balance. 13

15 A periodic finance charge is imposed on the credit card accounts. The periodic finance charge imposed on balances for purchases and cash advances for a majority of the accounts is calculated by multiplying (1) the daily balances for each day during the billing cycle by (2) the applicable daily periodic finance charge rate, and summing the results for each day in the billing period. The daily balance is calculated by taking the previous day s balance, adding any new purchases or cash advances and fees, adding the daily finance charge on the previous day s balance, and subtracting any payments or credits. Cash advances are included in the daily balance from the date the advances are made. Purchases are included in the daily balance generally from the date of purchase. Periodic finance charges are not imposed in most circumstances on purchase amounts if all balances shown in the previous billing statement are paid in full by the due date indicated on the statement. As of the date of this Form 8-K: the periodic finance charge imposed on balances in most credit card accounts for purchases is the Prime Rate, as published in The Wall Street Journal, plus a percentage ranging from 10.74% to 21.74%. A small portion of the credit card accounts have a non-variable periodic finance charge imposed on purchase balances ranging from 13.99% to 24.99%; the periodic finance charge imposed on balances in most credit card accounts for cash advances is the sum of the Prime Rate and 21.99%; and if a cardholder fails to make a payment by the due date under their credit card agreement, the periodic finance charge assessed on new transactions can be increased up to the sum of the Prime Rate and 26.74%, with 45 days advance notice. If a cardholder fails to make a payment for more than 60 days after the due date under their credit card agreement, the periodic finance charge assessed on existing balances in their account can be increased up to the sum of the Prime Rate and 26.74%, with 45 days advance notice. Promotional rates are offered from time to time to attract new cardholders and to promote balance transfers from other credit card issuers and the periodic finance charge on a limited number of accounts may be greater or less than those generally assessed on the accounts. Most of the accounts are subject to additional fees, including: a late fee if the cardholder does not make the required minimum payment by the payment date shown on the monthly billing statement. The late fee is up to $25 (or up to $35 if a late fee was assessed on the account during the previous six billing cycles); provided that the late fee will not be greater than the associated required minimum payment; a cash advance fee which is generally equal to 5.0% of the amount of the cash advance, subject to a minimum fee of $10; a balance transfer fee of 5.0% of the amount transferred to the account, subject to a minimum fee of $10, unless otherwise disclosed in a particular offer; a fee on purchases made outside the United States, whether in U.S. dollars or a foreign currency, which is generally equal to 3.0% of the amount of the purchase, after its conversion into U.S. dollars; a returned payment fee of $25 (or up to $35 if a returned payment fee was assessed on the account during the previous six billing cycles); provided that the returned payment fee will not be greater than the required minimum payment associated with the returned payment; and 14

16 a stop payment fee of $39, assessed if the cardholder requests that payment be stopped on a bank-issued convenience check. There can be no assurance that periodic finance charges, fees and other charges will remain at current levels in the future. Payments by cardholders on the accounts are processed and applied first to all minimum amounts due. Payments in excess of the minimum amount due generally are applied to balances associated with higher periodic rates before balances associated with lower periodic rates. Recent Lump Additions and Removals Citibank may from time to time transfer credit card receivables to the master trust in lump additions by designating additional accounts to the master trust. The table below presents the date, amount and percentage of the master trust portfolio of those lump additions made since uary (calculated based on the principal amount of the lump addition and the balance of principal receivables in the master trust as of the end of its monthly reporting period immediately preceding the specified lump addition date). Lump Additions of Receivables Since uary Percentage Amount of Amount of of Outstanding Finance Charge Principal Total Principal Lump Addition Date Receivables Receivables Receivables Receivables ch 29, $ 17,911,489 $1,234,692,881 $1,252,604, % 24, $ 6,784,413 $ 562,509,400 $ 569,293, % e 28, $ 8,369,659 $ 924,879,210 $ 933,248, % y 26, $ 4,797,729 $ 314,459,115 $ 319,256, % tember 27, $ 9,666,066 $ 682,465,956 $ 692,132, % ember 27, $ 15,951,494 $ 959,774,428 $ 975,725, % ch 28, $ 30,094,590 $1,443,311,222 $1,473,405, % 30, $ 4,817,064 $ 227,239,927 $ 232,056, % e 13, $ 31,644,334 $1,448,182,055 $1,479,826, % tember 26, $ 48,789,788 $1,441,935,893 $1,490,725, % ember 26, $ 27,034,270 $1,389,298,732 $1,416,333, % tember 28, $ 56,016,655 $5,863,375,700 $5,919,392, % Citibank may from time to time remove credit card receivables from the master trust in lump removals, including substantial lump removals of credit card receivables in excess of the required seller s interest (as determined by the pooling and servicing agreement and the rating agencies). The table below presents the date, amount and percentage of the master trust portfolio of those lump removals made since uary (calculated based on the principal amount of the lump removal and the balance of principal receivables in the master trust as of the end of its monthly reporting period immediately preceding the specified lump removal date). 15

17 Lump Removal Date Lump Removals of Receivables Since uary Amount of Finance Charge Receivables Amount of Principal Receivables Total Receivables Percentage of Outstanding Principal Receivables e 28, $ 12,048,065 $ 1,050,947,089 $ 1,062,995, % ember 29, $ 2,585,026 $ 160,923,947 $ 163,508, % ust 29, $ 3,920,046 $ 214,410,219 $ 218,330, % ch 16, $127,883,769 $11,859,172,625 $11,987,056, % In addition, Citibank from time to time removes inactive, zero balance accounts from the master trust in lump removals. Static Pool Information Static pool information is information relating to the master trust receivables, organized by year of origination of each related credit card account. Static pool information concerning losses, delinquencies, revenue yield and payment rate for the master trust receivables since uary is set forth in the following tables. This information is organized by year of origination of the applicable account for each of the five most recent years, and for accounts originated more than five years ago. As of tember 29,, less than 10.89% of the accounts were originated within the last five years. There can be no assurance that the loss, delinquency, revenue yield and payment rate experience for the receivables in the future will be similar to the historical experience set forth below. For purposes of the following tables, a due period for a particular month is the period beginning on the third to last business day of the prior month through and including the fourth to last business day of that month. The annualization factor for the percentages noted in the tables is 365 (or 366 in the case of a leap year) divided by the number of days in the due period. Thus, variation in the number of days in due periods can have a pronounced effect on the annualized percentages shown in the tables. In addition, static pool information is reported for new accounts only when those accounts are added to the master trust so no performance statistics are available for any period prior to the addition of the accounts to the master trust. Net Losses Net Losses reflect principal receivables balances that (1) have become 185 days delinquent or (2) are associated with bankruptcy filings, which are charged off within 30 days of notification. (Prior to a change in Citibank s bankruptcy loss recognition practice in tember, balances were charged off within 10 days of notification of bankruptcy.) Net losses include principal recoveries. The net losses percentage shown in the tables below is calculated by dividing net principal charged off during the due period by the principal receivables balance as of the beginning of the due period. If there is a lump addition or lump removal of receivables during the due period, then the denominator is the weighted average principal receivables balance over the due period. The principal receivables balance shown in the table below does not include finance charges and is as of the beginning of the due period. If there is a lump addition or lump removal of receivables during the due period, then the balance shown is the weighted average principal receivables balance over the due period. 16

18 Net Losses by (by Monthly Due Period) Principal Receivables and earlier $31,752,410, % 2.69% 2.83% 2.88% 3.01% 3.11% 3.17% 3.62% 3.77% 938,473, ,893,404 N/A N/A N/A N/A N/A N/A N/A N/A N/A 988,874,084 N/A N/A N/A N/A N/A N/A N/A N/A N/A 698,815,749 N/A N/A N/A N/A N/A N/A N/A N/A N/A 172,304,728 N/A N/A N/A N/A N/A N/A N/A N/A N/A Total $35,141,771, % 2.71% 2.83% 2.88% 3.00% 3.11% 3.19% 3.62% 3.76% 2007 and earlier 3.71% 3.79% 4.03% 3.99% 3.82% 4.26% 3.73% 5.23% 5.95% 4.85% 5.37% 5.26% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 3.72% 3.80% 4.03% 3.98% 3.78% 4.28% 3.74% 5.20% 5.93% 4.79% 5.36% 5.27% 2006 and earlier 5.11% 6.45% 5.68% 5.99% 6.98% 6.69% 6.59% 7.88% 7.87% 7.92% 7.92% 7.38% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 5.11% 6.36% 5.66% 5.87% 6.92% 6.64% 6.47% 7.81% 7.85% 7.89% 7.95% 7.49% 2005 and earlier 8.43% 9.49% 10.45% 9.07% 11.26% 9.66% 11.38% 10.95% 11.13% 11.32% 10.83% 9.36% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 8.34% 9.40% 10.27% 8.99% 11.18% 9.75% 11.46% 11.16% 11.23% 11.55% 11.29% 9.80% 17

19 2004 and earlier 9.06% 9.72% 8.26% 9.66% 11.36% 9.29% 9.61% 9.72% 9.39% 8.87% 8.35% 6.25% N/A N/A N/A Total 9.56% 10.29% 8.79% 10.15% 12.14% 10.03% 10.51% 10.50% 10.21% 9.66% 9.33% 6.95% 2003 and earlier 6.94% 6.03% 5.78% 5.44% 5.94% 5.04% 5.24% 5.12% 5.24% 4.92% 4.68% 4.28% N/A N/A N/A Total 7.81% 6.94% 6.39% 6.06% 6.53% 5.59% 5.83% 5.49% 5.74% 5.37% 5.11% 4.64% Delinquent Receivables that are 35 Days or More Past Due Delinquencies include both principal and finance charge receivables. The monthly delinquencies 35+ days percentage shown in the tables below is calculated by dividing total receivables 35 days and more past due by the principal and finance charge receivables as of the last full weekend of the month. The receivables outstanding balance shown in the table below includes principal and finance charges and is as of the last full weekend of the month. Delinquencies 35+ Days by (by Monthly Period) Receivables Outstanding and earlier $36,567,728, % 1.89% 1.93% 1.88% 1.98% 2.10% 2.17% 2.28% 2.34% 1,105,606, ,073, N/A N/A N/A N/A N/A N/A N/A N/A 1,175,463, N/A N/A N/A N/A N/A N/A N/A N/A 924,473, N/A N/A N/A N/A N/A N/A N/A N/A 236,150, N/A N/A N/A N/A N/A N/A N/A N/A Total $40,717,497, % 1.90% 1.94% 1.89% 1.99% 2.10% 2.17% 2.29% 2.34% 18

20 2007 and earlier 2.27% 2.36% 2.36% 2.27% 2.30% 2.36% 2.43% 2.53% 2.70% 2.92% 3.06% 3.12% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 2.29% 2.39% 2.38% 2.29% 2.32% 2.38% 2.44% 2.54% 2.71% 2.94% 3.08% 3.14% 2006 and earlier 3.05% 3.21% 3.19% 3.23% 3.28% 3.30% 3.52% 3.61% 3.81% 4.15% 4.28% 4.28% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 3.11% 3.28% 3.26% 3.30% 3.35% 3.39% 3.57% 3.66% 3.87% 4.22% 4.35% 4.35% 2005 and earlier 4.30% 4.58% 4.62% 4.81% 4.83% 5.17% 5.32% 5.45% 5.68% 5.88% 5.73% 5.51% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 4.44% 4.71% 4.74% 4.93% 4.95% 5.29% 5.44% 5.59% 5.85% 6.07% 5.95% 5.75% 2004 and earlier 5.33% 5.40% 5.21% 5.05% 4.94% 5.06% 5.03% 5.12% 5.31% 5.39% 5.01% 4.81% N/A N/A Total 5.63% 5.81% 5.66% 5.49% 5.37% 5.50% 5.49% 5.58% 5.82% 5.92% 5.61% 5.39% 19

21 2003 and earlier 4.49% 4.32% 4.02% 3.85% 3.64% 3.52% 3.55% 3.50% 3.52% 3.59% 3.57% 3.50% N/A N/A Total 5.10% 4.93% 4.59% 4.36% 4.11% 3.94% 3.92% 3.85% 3.86% 3.91% 3.89% 3.80% Delinquent Receivables that are 95 Days or More Past Due Delinquencies include both principal and finance charge receivables. The monthly delinquencies 95+ days percentage shown in the tables below is calculated by dividing total receivables 95 days and more past due by the principal and finance charge receivables as of the last full weekend of the month. The receivables outstanding balance shown in the table below includes principal and finance charges and is as of the last full weekend of the month. Delinquencies 95+ Days by (by Monthly Period) Receivables Outstanding and earlier $36,567,728, % 0.92% 0.98% 1.00% 1.03% 1.08% 1.12% 1.20% 1.22% 1,105,606, ,073,766 N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,175,463,854 N/A N/A N/A N/A N/A N/A N/A N/A N/A 924,473,573 N/A N/A N/A N/A N/A N/A N/A N/A N/A 236,150,873 N/A N/A N/A N/A N/A N/A N/A N/A N/A Total $40,717,497, % 0.93% 0.98% 1.00% 1.03% 1.08% 1.12% 1.20% 1.22% 2007 and earlier 1.15% 1.14% 1.16% 1.16% 1.18% 1.23% 1.30% 1.35% 1.43% 1.54% 1.61% 1.61% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 1.16% 1.15% 1.17% 1.17% 1.19% 1.24% 1.30% 1.35% 1.44% 1.55% 1.62% 1.62% 20